Biris Goran Wins for Farmec in Lawsuit with Romanian Tax Authority

Biris Goran has announced "the successful closure of a new stage" in the lawsuit between Farmec SA and Romania’s National Agency for Fiscal Administration (ANAF), obtaining an annulment of the ANAF's "taxation decision," which amounted to approximately EUR 13 million. In a previous settlement phase of Farmec's tax appeal, Biris Goran had managed to partially annul the tax in the amount of approximately EUR 2 million.

According to Biris Goran, in December 2014, ANAF ordered Farmec to pay approximately EUR 15 million, an amount which "represented the recalculation of the payment of excise duties related to the alcohol used in product networks included in the company’s portfolio."

The team representing Farmec SA in court was headed by Biris Goran Partner Mihai Nusca, and the firm’s tax team, which offered assistance in the case, was headed by Ruxandra Jianu.

Nusca explained that: “We took over this case in December 2014 and then we successfully completed several important litigious phases. Of course, this stage won at the Cluj Court of Appeal represents a notable success of our litigation team. The decision rendered by the magistrates of the Cluj Court of Appeal has many favorable legal consequences, including that it safeguards more than 600 jobs, as well as that it helps Farmec to continue its activity and growth on the Romanian and international market.”

Jianu stated: “It was a complex case, in which we assisted Farmec as early as the tax inspection phase, we built defenses both in the inspection period and in the subsequent phases of the administrative appeal and court action. We are glad that the court ascertained what was obvious: the company complied with the legal provisions in force and the taxation of approximately EUR 15 million was performed with no legal ground. We thank Farmec for the confidence granted to Biris Goran and we are glad that starting now the company will focus its efforts on the business and brand expansion plans, being in top 3 major Romanian brands.”